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Highlights:
- Energy bills for average UK households almost doubled between November 2021 and November 2022.
- In November 2021, this average household energy bill stood at £1,277, £1,223 lower than in November 2022.
Energy bills have risen by a significant amount over the past year. The latest data from the price comparison website Comparethemarket has shown that the energy bills for average UK households almost doubled between November 2021 and November 2022, indicating the challenge that Brits are facing due to higher inflation.
The government has been providing support to households through the energy price cap, which limits the amount that energy companies can charge from domestic consumers for a unit of gas or electricity. This cap, which is revised every quarter now, helps keep the energy bills in control while also supporting the energy companies and preventing them from going bust.
The latest energy price cap, which came into effect in October, would have taken the average bills over £3,000 per year. However, the government decided to cap the prices to keep the average household bill in the UK at about £2,500 per year. The actual bill may be higher or lower depending on the usage, the number of family members, and several other factors.
Image source: © Lovelyday12 | Megapixl.com
In November 2021, this average price stood at £1,277, meaning that the price now is £1,223 higher compared to a year ago.
It may be noted that besides the energy price support scheme, the government has also announced other measures to support households, including the £400 non-repayable energy discount. Besides, the most vulnerable households are also being offered targeted support in the form of cost-of-living payments.
Let's explore LSE-listed energy stocks in the wake of this information.
Centrica Plc (LON: CNA)
Centrica is a leading energy utility company in the UK, and it belongs to the blue-chip FTSE 100 index. As of 29 December 2022, the company's market cap stands at £5,690.15 million, while the EPS is 0.21. The stock has provided returns of 40.16% and 35.22% on a 12-month and year-to-date (YTD) basis, respectively. Shares of CNA were down 0.37% at GBX 96.68 as of 9:14 am GMT on Thursday.
Drax Group Plc (LON: DRX)
Drax Group belongs to the mid-cap-focused-FTSE 250 index. It is in the business of generating and selling renewable electricity. The firm has a market cap of £2,841.13 million, while the EPS stands at 0.20 as of 29 December 2022. Its one-year and YTD returns stand at 18.78% and 17.11% at the time of writing. Drax Group's share price stood at GBX 708.50 as of 9:34 am GMT on Thursday.
Telecom Plus Plc (LON: TEP)
Another constituent of the FTSE 250 index, the multi-utility company has a market cap of £1,746.72 million. It holds a positive EPS of 0.45 and has provided returns of 40.00% and 38.41% on a 12-month and YTD basis, respectively. The stock traded 0.23% higher at GBX 2,205 as of 9:41 am GMT on Thursday.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
